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South Korea to send ships to Red Sea port to avoid Strait of Hormuz
South Korea is gearing up to deploy five ships to the port of Yanbu on Saudi Arabia’s Red Sea coast as it seeks to establish new oil supply routes, according to a member of the ruling party. This move comes in response to growing concerns over the potential disruption of the Strait of Hormuz.
The recent surge in oil prices, fueled by ongoing conflicts, poses significant risks to South Korea’s economic growth and inflation. The nation depends heavily on Middle Eastern oil, which accounts for about 70% of its crude imports.
In light of these challenges, the South Korean government is considering emergency measures such as implementing a fuel price cap, a measure not taken since the financial crisis of 1997.
The decision to explore alternative oil routes follows Iran’s effective closure of the Strait of Hormuz, a move in retaliation against military actions by the United States and Israel.
“It is imperative that Korean-flagged vessels navigate alternative routes to ensure a stable supply of crude oil,” stated lawmaker Ahn Do-geol. This statement came after a critical meeting with key government agencies, including the energy ministry, to discuss the country’s energy security strategy.